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Unveiling Meta Platforms and MongoDB: Zacks Optimistic and Pessimistic Picks

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Breaking News from Chicago

A recent release from Zacks Equity Research has spotlighted Meta Platforms (META) as the Bull of the Day and MongoDB (MDB) as the Bear of the Day. Also under the lens are NIKE Inc. (NKE), PVH Corp. (PVH), and Carnival Corp. (CCL).

Let’s delve into the insights provided on these five stocks:

The Bull: Meta Platforms

Meta Platforms METAMETA continues to shine, securing a Zacks #1 Rank Strong Buy owing to its escalating earnings momentum post their last quarterly report. A compelling narrative unfolds with a 200% EPS jump year-over-year to $5.33 in Q4, alongside a revenue leap of 24.7% to $40.11 billion.

This surge in estimates from $19.41 to $19.94 for the current year and from $22.42 to $23.09 for the next signals a promising trajectory with 34% and 16% annual growth respectively.

The Reality Labs Journey

With Apple’s Vision Pro raising eyebrows, the performance of Meta’s Reality Labs, especially its Quest gear division drawing attention. Despite operating at a loss, the long-term vision remains clear as it navigates the uncharted waters of the Metaverse.

The Meta Quest Pro launch, though a modest splash, paints a picture of continued investment with profits on the horizon as the Metaverse’s potential unfolds.

Core Growth Leading to Innovation

Amidst a 400% stock climb and a revenue swing from $117 billion to $135 billion, Meta Platforms’ core business is reclaiming lost ground, with forecasts hinting at a $160 billion topline pivotal moment for the behemoth.

The duality of wins and losses projected for Reality Labs underscores strategic investment for future Metaverse dominance, illustrating a narrative akin to a high-stakes chess game between tech titans.

The Bear: MongoDB

This $27 billion datacenter solutions provider, MongoDB, has stumbled into the role of Zacks Bear of the Day despite its developer-friendly allure. The recent earnings triumph did little to overshadow the dimmer future painted by weaker guidance.

Forecasting a revenue upturn of only 13% to 15% for FY’25, MongoDB has fallen short, urging analysts to reevaluate growth forecasts with a -25% drop in annual profits looming large.

Quarterly Snapshots

MongoDB’s Q4 FY24 performance showcased promise with an 86.96% earnings beat and a revenue spike of 26.6%. Anchored by subscription revenues accounting for 97.1% share and Atlas product’s robust growth, MongoDB navigated the quarter with aplomb.

Expanding Territory and User Base

The quest for scalability is evident with MongoDB adding 1,400 customers and witnessing a spectacular customer base expansion to 47,800. A 34% surge in Atlas revenues underscores MongoDB’s stronghold, driving home its long-term growth potential and resilience.

While near-term forecasts may seem grim, MongoDB’s dynamic customer additions and product scaling imply a short-lived setback, possibly heralding a phoenix-like rise in the near future.

Exploring the Terrain: NIKE on the Horizon

On the horizon lies NIKE Inc., gearing up to unveil its third-quarter fiscal 2024 results on March 21. As the leading sports apparel giant readies for its quarterly performance reveal, analysts and investors alike brace for the inevitable market ripple effect.

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